Will Labour ban new licences? The Guardian reports that following its election victory the Labour government is facing a legal dilemma over plan to impose an immediate ban on new North Sea oil and gas exploration before the industry’s latest licensing round closes.
Its election manifesto pledged to the banning of new North Sea exploration licences. The new government needs to decide whether or not to cancel the process, which could end up granting a small number of new North Sea licences in breach of its pledge to end new oil and gas exploration. But cancelling the mechanism, which is run by the industry regulator, the North Sea Transition Authority (NSTA), could leave the government vulnerable to legal actions from the companies, which may have spent millions preparing their bids.
The Guardian anticipates that the government is expected to take legal advice on how to implement its North Sea policy, without risking a legal challenge from oil and gas companies, before taking a final decision on the live licensing round. Tessa Khan, the executive director of Uplift, which campaigns against fossil fuels, said it would be “shocking” if a newly elected government failed to deliver on a manifesto pledge to stop North Sea development.
A government spokesperson said: “As previously stated, we will not issue new licences to explore new fields. We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan.”
The government was forced to deny reports (in the Daily Telegraph) that the energy secretary, Ed Miliband, had defied his own officials by ordering an immediate ban on new licences, including those still being considered by the regulator. More on that report here.
Meanwhile the government has admitted that a proposed Cumbrian coalmine was approved unlawfully, as the carbon emissions of coal from the mine should have been taken into account in the planning decision. This follows a precedent set by last month’s Supreme Court decision when Surrey County Council’s decision to extend planning permission for an oil drilling well at Horse Hill, on the Weald, was quashed.
The government has therefore decided not to defend a previous administration’s decision to approve a new coalmine. Read more on that story here.